Place RedBull

VN-UK INSTITUTE FOR RESEARCH AND EXECUTIVE EDUCATION
LECTURER
INTERNATIONAL MA. Mai Quynh Anh
MARKETING
GROUP
CHANNELS Rosalee - Red Bull GmbH
DANANG, JAN 10TH 2022

CHANNEL OF
DISTRIBUTION STRUCTURES
DISTRIBUTION PATTERN
ALTERNATIVE
TABLE OF MIDDLEMEN CHOICE
CONTENT FACTORS AFFECTING

CHOICE OF CHANNELS
INTERNATIONAL MARKETING
CHANNELS
CHANNEL MANAGEMENT
THE INTERNET
LOGISTICS
CHANNEL OF
DISTRIBUTION
STRUCTURES
INTERNATIONAL
MARKETING CHANNEL
DISTRIBUTION CHANNEL
The channel is used in order for a
A set of interdependent firm to get the message of their
organizations that help to products or services to foreign
make a product or service consumers. The distribution activities
available for use or would occur in more than one
consumption by consumer or nation.
business user.
The choice of distribution structures
may come from the company's mode
of entry.
Foreign government restrictions
Dictates of parent companies

Challenges in
International
context Resource scarcity
Contractual commitments
Import-oriented
distribution structure
Importers control the Sold with high prices in

fixed supply of goods limited numbers
Local rather than Channel member

national scope independently performs
most marketing functions
Japanese
distribution
structure
Dominated by many small The channel

middlemen dealing with controlled by producers
many small retailers
Japan
a very attractive
market for retailers,
but challenges
Business philosophy with 3 Daitenho - Large-Scale
values: Loyalty, Harmony Retail Store Law
and Friendship
DAITENHO- LARGE-SCALE RETAIL STORE LAW
REASON
Reduction in market
share of retailers from
2004-2009 LAWS
Owned one store - more
than 500 ha: accepted by
local people, local small
retailers, as well as the
local authorities.
LAWS
The government
protect small retailers
Pressures for change in a country
come from within and without
TRADITIONAL
TO MODERN Expand the market
CHANNEL and gain recognition
STRUCTURES
Internal Internet-based system

TRADITIONAL Does not change overnight
DISTRIBUTION
Be residual
BASE
RETAIL PATTERN
SIZE PATTERN
Extreme in size
Concentration in retailing
RETAIL PATTERN
The stage and speed of
economic development affect
the rate of change.
THE NORTH AMERICAN RETAIL LANDSCAPE

DIRECT MARKETING
SELLING DIRECTLY
Most suitable choice for markets
with underdeveloped distribution
systems.
Red Bull: email and letters to

promote products.
RESISTANCE TO CHANGE
Change traditional way consider as

threaten & resist
Ex: In Italy, a new retail outlet must
obtain a license
-> In 2 year, only 10 out of 200 granted
ALTERNATIVE MIDDLEMEN CHOICES
AGENT MIDDLEMEN MERCHANT MIDDLEMEN
Do not take (wholesalers and retailers)

ownership of goods Buy and re-sell their
goods
MANUFACTURER'S COMPLEMENTARY
RETAIL STORE MARKETERS (PIGGYBACK)
MANUFACTURER’S
HOME-
COUNTRY
GLOBAL RETAILERS
EXPORT AGENT
EXPORT MANAGEMENT WEBB-POMERENE

MIDDLEMEN
COMPANIES (EMC) EXPORT ASSOCIATIONS
FOREIGN SALES
TRADING COMPANIES.
CORPORATION
FOREIGN- MANUFACTURER’S REPRESENTATIVES
COUNTRY &
A FOREIGN DISTRIBUTOR
MIDDLE
RED BULL'S SUBSIDIARY IN THE US A FOREIGN DISTRIBUTOR OF RED BULL
GOVERNMENT-
AFFILIATED
MIDDLEMEN
Members of this channel may work at the
federal, regional, or local levels. In certain
countries, the government has significant
purchasing power and clout with suppliers
and other middlemen.
Identify specific target markets within and across countries
FACTORS Specify marketing goals in terms of volume, market share, and
AFFECTING profit margin requirements
CHOICE OF Specify financial and personnel commitments

development of international distribution
to the
CHANNELS Identify control, length of channels, terms of sale, and channel

ownership
SIX C OF
CHANNEL STRATEGY
COST
2 KINDS
(1) the capital or investment cost of (2) the continuing cost of maintaining it
developing the channel Costs of middlemen:
Transporting/ storing the goods
Breaking bulk
Providing credit
Local advertising
Sales representation
Negotiations.
SIX C OF
CHANNEL STRATEGY
Capital requirement:
Producers have to provide initial

A capital requirement and cash
inventories on consignment
flow are considered for using a
loans, floor plans or other
particular type of middleman
arrangements
3. Control:
The more involved => the more
control
FACTORS Channels grow longer => the ability
to control the price, volume promotion
AFFECTING and type of outlets decrease
CHOICE OF
CHANNELS
4. Coverage:
Gain the optimum volume of sales
obtainable in each market
Secure a reasonable market share
Attain satisfactory market penetration
5. Character:
The channel of distribution system: fit
the character of the company and the
FACTORS markets
Channel commanders: aware that
AFFECTING channels patterns can change
CHOICE OF 6. Continuity:
Channels of distribution: longevity
CHANNELS problems
Most middlemen: little loyalty to their
vendors
CHANNEL MANAGEMENT
DEFINITION
The ability of building a satisfactory

channel system impacting international
market development.
CONSTRUCTION OF THE MIDDLEMEN NETWORK

Selecting these middlemen Establishing working
Seeking out potential
that fit a company’s relationships with the
middlemen
requirements selected middlemen
LOCATING
MIDDLEMEN
SOURCES TO SEEK
CRITERIA ARE BUILT
PROBLEMS SUITABLE MIDDLEMEN
AROUND 4 AREAS
FOR A BUSINESS
Productivity/volume Locating information The U.S. Department of

Financial strength Discovering available Commerce
Managerial stability middlemen Commercially published
and capability directories
Nature and reputation Middlemen associations
of the business. Internet-based services
(i.e. Unibex)
Send a letter/email to the middlemen (include: product information,
distributor requirements in the native language)
Follow up with the best respondents for specific information:
lines handled number of salespeople

SELECTING
the size of the firm territory covered other background information. MIDDLEMEN:
SCREENING
Check middlemen's reliability (through references from other
customers of the middlemen)
Experienced exporters: go to a foreign country -> talk directly to the

users to acknowledge the best distributors -> visit those middlemen to
make the best decision
SELECTING MIDDLEMEN:
AGREEMENT
After finding a potential

middleman, the manufacturer Some experienced exporters
will offer an agreement that recommend: the first contracts
points out specific tasks and signed for only 1 year
responsibilities of both sides
The motivation of the middleman is
correlated with sales volume.
MOTIVATING
MIDDLEMEN
5 categories to motivate the middlemen:
Financial rewards Company support

Psychological rewards Corporate rapport
Communication
Not meet requirements → termination
Regulations for termination differ worldwide
Example:
TERMINATING The U.S: termination - a simple action
regardless of the type of middlemen
MIDDLEMEN Colombia: if a company terminates an agent,

they have to pay a final settlement
Legal protection is crucial when the contracts with

distributors are established.
CONTROLLING
MIDDLEMEN
Controlling middlemen: so important

because of long channels used in
international distribution
Giving marketing objectives clearly.

Standards of performance include:
Control over the distribution
Sales volume Growth objectives network: ensuring the product is
Inventory turnover ratio flowing to the desired middlemen
Price stability
The number of Quality of publicity
accounts per area Control over at the middlemen level
Red Bull
Partially switch to direct marketing
INTERNET
Walmart's website
Get available information online
Buy products through retailers, e-
commerce, small retailers
websites,....
The management process of 'planning,
LOGISTICS
implementing, and controlling the
physical and information flows concerned
with materials and final goods from the
point of origin to the point of usage.
ROSALEE TEAM Physical distribution process.
The location of plants, warehousing,

transportation mode, inventory
management, packing, materials
handling and order fulfillment.
LOGISTICS The sum of each of the different

activity costs entails an infinite
number of “total costs”.
The concept behind physical

distribution is the achievement of
the optimum system cost.
RED BULL
THANK YOU !
ROSALEE TEAM

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VN-UK INSTITUTE FOR RESEARCH AND EXECUTIVE EDUCATION

DANANG, JAN 10TH 2022

TABLE OF MIDDLEMEN CHOICE

CONTENT FACTORS AFFECTING

Dictates of parent companies

Importers control the Sold with high prices in

Local rather than Channel member

Dominated by many small The channel

Internal Internet-based system

THE NORTH AMERICAN RETAIL LANDSCAPE

Red Bull: email and letters to

Change traditional way consider as

AGENT MIDDLEMEN MERCHANT MIDDLEMEN

Do not take (wholesalers and retailers)

EXPORT MANAGEMENT WEBB-POMERENE

AFFECTING profit margin requirements

CHOICE OF Specify financial and personnel commitments

CHANNELS Identify control, length of channels, terms of sale, and channel

Producers have to provide initial

The ability of building a satisfactory

CONSTRUCTION OF THE MIDDLEMEN NETWORK

Productivity/volume Locating information The U.S. Department of

Follow up with the best respondents for specific information:

lines handled number of salespeople

Experienced exporters: go to a foreign country -> talk directly to the

After finding a potential

Financial rewards Company support

MIDDLEMEN Colombia: if a company terminates an agent,

Legal protection is crucial when the contracts with

Controlling middlemen: so important

Giving marketing objectives clearly.

The location of plants, warehousing,

LOGISTICS The sum of each of the different

The concept behind physical

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